Ness Technologies Ltd. (Nasdaq: NSTC) today published its financial report for the first quarter of 2009. The IT integrator posted $136.4 million revenue for the first quarter, 15% less than for the corresponding quarter. The company attributed two-thirds of the decrease, $15.5 million, to currency fluctuations on non-dollar revenue. The rest of the decrease was attributed to slower sales.
GAAP-based net profit plummeted 78% from the corresponding quarter to $1.5 million ($0.04 per share). Non-GAAP net profit fell 55% to $4 million ($0.10 per share). Cash flow, however, rose 350% to $8.6 million.
Ness's orders backlog was $684 million at the end of March, 13% less than a year earlier.
Ness had $58 million in cash and cash equivalents at the end of March, unchanged from the end of 2008.
Ness lowered its full-year guidance to non-GAAP earnings per share of $0.40-0.60 on $590-620 million revenue. The company cited the continued strengthening of the US dollar since its previous guidance, and the worse than expected downturn in sales in Central and Eastern Europe.
Ness president and CEO Sachi Gerlitz said, "There are some preliminary signs that the slowdown may be bottoming out for us in the US, and we expect a recovery in the coming quarters. Although we do not have a crystal ball regarding the timing of such a recovery, we are running a very tight ship in preparation for it and in anticipation of new momentum in the public sector in Central and Eastern Europe and Israel in the fourth quarter."
Ness's share fell 4.1% at the opening on Nasdaq to $3.77, giving a market cap of $146 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 5, 2009
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